Intermediate product is non dutiable, final product is dutia

as far as i know....  cenvat is not to be denied on the inputs used in intermediate product of a final product even if such intermediate product is exempted from duty.........

Cenvat credit should not be denied if the inputs are used in any intermediate of final product, even if such intermediate product is exempt from payment of duty. Cenvat credit is available so long as the inputs are used in or in relation to manufacture of final produt, and whether directly or indirectly (CBE&C Circular No. B4/7/2000-TRU dated 3.4.2000 clarified vide para 5).

The definition for 'Input" under Rule 2 (k) itself is very clear  for that . input means

(iii)  all goods used for generation of electricity or steam for captive use,"

So that CENVAT Credit is eligible for input used for generation of power, ie (Coal)

Thanks alot, Mr.Ramesh, Arun Kumar and Sunil Kumar Ji,